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Agency Partnership Agreement for Indonesia

Agency Partnership Agreement Template for Indonesia

A comprehensive legal agreement governed by Indonesian law that establishes and regulates the relationship between a principal company and its appointed agent or representative. The document outlines the terms and conditions under which the agent will represent the principal's interests in specified territories within Indonesia, including commission structures, performance expectations, and compliance requirements with local regulations. This agreement incorporates key provisions from Indonesian commercial law, including the Civil Code and relevant trade regulations, while addressing specific requirements for agency relationships under Indonesian jurisdiction.

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Agency Partnership Agreement

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What is a Agency Partnership Agreement?

The Agency Partnership Agreement is a crucial document for businesses seeking to establish or expand their presence in the Indonesian market through local representation. This agreement type is particularly relevant when a company (the principal) wishes to appoint another party (the agent) to act on its behalf in specific territories or for particular business activities within Indonesia. The document must comply with Indonesian legal requirements, including the Civil Code, Commercial Code, and relevant ministerial regulations governing agency relationships. It typically includes detailed provisions on territorial rights, commission structures, performance obligations, compliance requirements, and protection of intellectual property. The agreement is essential for creating clear legal frameworks for business relationships while ensuring compliance with local laws and regulations. This document is commonly used when entering new markets, expanding distribution networks, or establishing local representation in Indonesia.

What sections should be included in a Agency Partnership Agreement?

1. Parties: Identification of the Principal and Agent, including full legal names, registration details, and addresses

2. Background: Context of the agreement, brief description of the parties' businesses, and purpose of the agency relationship

3. Definitions: Key terms used throughout the agreement, including Territory, Products/Services, Commission, etc.

4. Appointment and Scope: Express appointment of the agent, nature of the relationship (exclusive/non-exclusive), and territorial scope

5. Term and Termination: Duration of the agreement, renewal provisions, and circumstances for termination

6. Rights and Obligations of the Agent: Detailed responsibilities, performance standards, reporting requirements, and compliance obligations

7. Rights and Obligations of the Principal: Support to be provided, product information, training, and other principal obligations

8. Commission Structure: Calculation method, payment terms, and conditions for commission earnings

9. Intellectual Property Rights: Usage rights for trademarks, trade names, and other IP during the agency relationship

10. Confidentiality: Protection of confidential information and trade secrets

11. Non-Competition: Restrictions during and after the agreement term

12. Compliance with Laws: Obligation to comply with Indonesian laws and regulations

13. Dispute Resolution: Process for resolving disputes, choice of law, and jurisdiction

14. General Provisions: Standard clauses including notices, amendments, assignment, and severability

What sections are optional to include in a Agency Partnership Agreement?

1. Insurance Requirements: Specific insurance obligations when the agent handles high-value products or services

2. Performance Targets: Detailed sales or performance targets when specific metrics are required

3. Training and Support: Detailed provisions for ongoing training when complex products/services are involved

4. Marketing and Promotion: Specific marketing obligations and cost-sharing arrangements when relevant

5. Sub-Agents: Rights and procedures for appointing sub-agents if permitted

6. Product Warranty: Warranty handling procedures when physical products are involved

7. Force Majeure: Detailed force majeure provisions for high-risk territories or sensitive operations

8. Data Protection: Specific data protection obligations when handling personal or sensitive data

9. Foreign Exchange Provisions: Currency and exchange rate provisions for international arrangements

What schedules should be included in a Agency Partnership Agreement?

1. Schedule 1 - Territory Definition: Detailed description of the geographical area covered by the agreement

2. Schedule 2 - Products/Services: Comprehensive list of products or services covered by the agency

3. Schedule 3 - Commission Structure: Detailed commission calculations, rates, and payment terms

4. Schedule 4 - Performance Metrics: Specific KPIs and measurement criteria

5. Schedule 5 - Reporting Ƶ: Standard forms for regular reporting requirements

6. Schedule 6 - Trademark Usage Guidelines: Rules and requirements for using the principal's trademarks

7. Appendix A - Required Licenses: List of mandatory licenses and permits required under Indonesian law

8. Appendix B - Compliance Checklist: Regulatory compliance requirements specific to the industry

9. Appendix C - Standard Operating Procedures: Detailed operational procedures and requirements

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Indonesia

Publisher

Ƶ

Document Type

Agency Agreement

Cost

Free to use
Relevant legal definitions









































Clauses









































Relevant Industries

Manufacturing

Consumer Goods

Technology

Professional Services

Financial Services

Healthcare

Industrial Products

Retail

Automotive

Telecommunications

Energy

Agriculture

Construction

Pharmaceuticals

Tourism

Relevant Teams

Legal

Business Development

Sales

Operations

Compliance

Commercial

International Business

Corporate Development

Distribution

Partner Management

Contract Administration

Risk Management

Relevant Roles

Chief Executive Officer

Managing Director

Business Development Manager

Sales Director

Legal Counsel

Compliance Officer

Commercial Director

Operations Manager

Country Manager

Regional Director

Partnership Manager

Contract Manager

Business Development Director

Sales Manager

Chief Legal Officer

Chief Commercial Officer

Distribution Manager

Market Entry Specialist

Industries








Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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